Printer Friendly

IRS ISSUES INSTRUCTIONS FOR REPORTING CASH TRANSACTIONS

      IRS ISSUES INSTRUCTIONS FOR REPORTING CASH TRANSACTIONS
    NASHVILLE, Tenn., Nov. 19 /PRNewswire/ -- On Nov. 1, a car salesman in Chattanooga was formally charged by an East Tennessee federal grand jury with willfully failing to file Form 8300 with the IRS after accepting a $17,000 cash payment from a customer and with causing his dealership to fail to file Form 8300.  This case represents the first criminal charge of its kind in Tennessee.
    While the IRS investigates and pursues civil or criminal charges against persons or businesses who fail to report cash transactions, the agency is more interested in educating business owners and employees about their responsibilities for filing Form 8300, according to IRS District Director Glenn Cagle.
    These are the rules:  Anyone engaged in a trade or business who receives more than $10,000 in cash in a single transactions (or in multiple but related transactions) must file information Form 8300 with the IRS within 15 days of receiving the cash.
    Cagle said that there is no question that compliance with this law is low.  In 1990 only 270 Forms 8300 were filed by businesses in Tennessee while cash reports filed by banks indicated huge amounts of currency flowing through the state.
    IRS agents canvassed about 160 Tennessee businesses in May and found over $1.2 million in cash transactions that should have been reported but were not.  The agents educated a lot of business owners about the 8300 filing requirements during the project, but they also levied about $12,000 in civil penalties.  A few businesses were referred for possible criminal investigation.
    "We would prefer being educators to help people comply with this law as opposed to having to penalize them for not filing the 8300 forms," said Cagle.  "Most businesses want to comply with the law once they become aware of it."
    Cagle said the idea behind the reporting rules is that large cash payments may indicate that the buyer is trying to evade taxes or hide profits from illegal activities.  Form 8300 makes it more difficult for dishonest people to spend those profits.
    "While we continue our education efforts," said Cagle, "such as publicizing the law and teaching it in our business workshops, we will also be auditing businesses likely to have large cash transactions. These checks will be part of our normal audit process, but we may also do occasional unannounced audits specifically to check 8300 compliance."
    Cagle also said there has been some abuse of non-cash monetary instruments such as money orders and cashier's checks.  The IRS is hopeful that new proposed regulations will curb the use of these items in attempts to structure cash transactions to avoid the 8300 filing requirements.
    For more information about the cash transaction reporting laws, call the IRS toll free at 1-800-829-1040.
    -0-                        11/19/91
    /CONTACT:  Melba Wells, IRS Public Affairs, 615-736-7291/ CO:  Internal Revenue Service ST:  Tennessee IN: SU: CM -- CH003 -- 4991 11/19/91 13:40 EST
COPYRIGHT 1991 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1991 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Nov 19, 1991
Words:492
Previous Article:AGNICO-EAGLE MINES REPORTS POSITIVE EXPLORATION RESULTS AT THE LARONDE MINE
Next Article:HUGHES SUPPLY ANNOUNCES QUARTERLY RESULTS


Related Articles
IRS UNCOVERS $1 MILLION IN UNREPORTED CASH TRANSACTIONS
IRS TARGETS CASH REPORTING RULES
CASH TRANSACTIONS OVER $10,000 MUST BE REPORTED TO THE IRS
IRS ANNOUNCES CASH TRANSACTIONS OVER $10,000 MUST BE REPORTED
The IRS and personal property rental income.
BUSINESS TAXPAYERS: INFORMATION RETURNS DUE TO PAYEES SOON
BUSINESS TAXPAYERS: INFORMATION RETURNS DUE TO PAYEES SOON
BUSINESS TAXPAYERS: INFORMATION RETURNS DUE TO PAYEES SOON
BUSINESS TAXPAYERS: INFORMATION RETURNS DUE TO PAYEES SOON
CASH TRANSACTIONS OVER $10,000 MUST BE REPORTED TO THE IRS

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters